Tranche - what is it and what are the implications for the state

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2018-03-22 08:26:08

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In today's economic world, it is often possible to meet such a thing as a tranche. What it is, try to understand.

General definition

So the tranche is an issue of certain securities and certain shares of the bond loan of the type manufactured as a separate series. Also there is another definition of "tranche” - that it is a loan or credit provided to the borrower in the form of a single serving.what is tranche

Tranche can be submitted to one of several groups of securities, are interrelated and issued at the same time. Different types of data appropriation of one issue, there are different yield, risk and maturity. Tranche can be recognized by some portion of the securities of the issue, which is available within the scope of this edition in a specific period throughout the period of circulation of such securities. While this period may not coincide with the date of the initial offering.

Use in the state management of the economy

agreement tranche

To meet the position of state regulatory interpretation of the definition of "tranche": what is the share of the loan, which may be granted under certain conditions after a certain period of time during the validity period of the credit agreement. Bright enough example – is the provision of a loan from the International monetary Fund, which takes place in four tranches for 25% of the total. Thus, the use of the first part of the loan funds is carried out immediately after the signing of this agreement. But each subsequent tranche is received under the condition that all terms of the previous one. Practice of international lending provides for the implementation mechanism of the tranche that involves the use of lender monitoring tools using specialized targets for the application of the loan by the borrower.

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Tranche - what it is in the financial aspect

credit tranche

The notion was borrowed from French in the twentieth century. The spectrum of definitions of the meaning of this term is at the financial level. In a General sense, a tranche is a part of some cash flow. Considering this concept in a narrow sense, it is necessary to distinguish three main values:

  • Part of the loan that provides for an agreement tranches under a single credit agreement (line of credit). The specified proportion shall be in the form of part payment amount in case of repayment of the debt, or when obtaining a loan.
  • Part of the package for certain financial assets, including the main instruments of the capital market in the form of stocks and bonds, and derivative securities (derivatives). Both presented tools are intended for sale.
  • One of a group of securities that are interrelated. The main condition – their simultaneous emission. However, inherent differences in such factors as risk, return and time to maturity.

Tranche - collateral item, loan agreement

The Presented definitions reflect the meaning of the expression "tranche”.

However, the notion of "tranche" is used quite successfully and at the conclusion of the overdraft agreement. Tranche in this case means funds provided in a lump sum as part of the signed overdraft agreement in the amount required to settle the corresponding obligations of the borrower in case of absence in the required amount of funds in the accounts. In this installment in this case is limited to a certain limit established in the corresponding agreement.


Article in other languages:

BE: https://tostpost.com/be/nav-ny-gramadstva/4901-transh---shto-geta-yakoe-znachenne-mae-dlya-dzyarzhavy.html

DE: https://tostpost.com/de/news-und-gesellschaft/4900-tranche---was-ist-das-und-welche-bedeutung-hat-f-r-den-staat.html

ES: https://tostpost.com/es/noticias-y-sociedad/4905-tramo-de-qu-es-y-cu-l-es-la-relevancia-para-el-estado.html

KK: https://tostpost.com/kk/zha-aly-tar-o-am/4903-transh---b-l-anday-memleket-sh-n.html

PL: https://tostpost.com/pl/aktualno-ci-i-spo-ecze-stwo/4904-transza---co-to-jest-i-jakie-znaczenie-ma-dla-pa-stwa.html

PT: https://tostpost.com/pt/not-cias-e-sociedade/4902-tranche---o-que-e-qual-a-import-ncia-para-o-estado.html

TR: https://tostpost.com/tr/haber-ve-toplum/4908-taksit---bu-nedir-ve-ne-kadar-nemlidir-bir-devlet-i-in.html

UK: https://tostpost.com/uk/novini-ta-susp-l-stvo/4904-transh---scho-ce-yake-znachennya-ma-dlya-derzhavi.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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